Tips for starting out and thriving in small business

New Zealand is a nation of small businesses…

97 per cent of enterprises in New Zealand are small businesses. These 459,300 enterprises include those with no employees, micro (1-5 employees), and small (6-19 employees) enterprises.

New Zealand Government Small Business Sector Report 2014

These businesses generate about a third of the country’s GDP; and most importantly they are the backbone of entrepreneurial talent and innovative ideas.

Here at Johnston Associates South, Chartered Accountants for Nelson & Marlborough, we’re proud to be called upon to advise many start-ups, and love seeing our small business clients grow sustainably.

If you’re thinking of starting up in business, we want to help. We called upon four of our team to give you their top tips for “starting out and thriving in small business…”

Get the cash flowing. One of the most important facets of running a successful business is cash management. If you’re starting out you need to initiate cash flow as soon as possible. Consider asking for deposits on work or high-ticket retail items up-front, with balances due on delivery. If you need advice on jump starting your cash flow contact us… Did I mention that if you’re starting out in business it’s really important to get the right advice from your trusted Chartered Accountant… Us! – Dean Steele

The devil’s in the detail! All the most successful projects start with a plan. That said before you get too bogged down in the detailed planning for your business, you should first consider what you want from the business and how you are going to achieve those goals. Certain key issues will determine your business’ ability to compete in the marketplace, whether you are setting up a new business, or acquiring an existing one. Remember our business advisory team can help you with this and so much more. – Ben Douglas

Your records matter… Keep good records. Before starting out I’d recommend you discuss with your Chartered Accountant the form your business records should take. It’s important to think about not only the filing of documents, payment of wages, banking and other records – but also the extent to which you should maintain records that will assist your Chartered Accountant in preparing your financial statements. – Brad McNeill

Prepare for one of the certainties in life… Taxes! Tuck away twenty per cent of all sales or payments received in an interest-bearing account for tax and ACC. That way you’ll always have funds available when you need them. You’ll avoid falling behind in payments and incurring interest, penalties and grief from IRD debt management staff. – Kelvin Scoble